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161. Rewriting the Future of America’s Maritime Industry to Compete with China

Author:
Michael Roberts
Publication Date:
10-2023
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
For decades, companies outside the United States have dominated the international commercial shipping and shipbuilding industries. At various times since World War II, Japan, Korea, and certain European countries have been able to leverage their export-driven manufacturing economies and government support to become world leaders in commercial shipbuilding and major players in international shipping. The People’s Republic of China (PRC) has taken that strategy to a new level and now produces more than half the large commercial ships delivered annually, controls scores of seaports in dozens of foreign countries, and owns almost one-fifth of the global commercial fleet. American commercial shipbuilders and US flag shipping companies have long faced fierce headwinds in international markets and have seen support from the US government dwindle. The US reset its maritime policies in the 1990s when America was the sole superpower and the security benefits of a robust commercial maritime industry were in doubt. By the end of 2022, Americans owned only 3 percent of the 55,000 ships in the global commercial fleet, including just 178 large US flag cargo ships, 85 of which are committed to international trade (see tables 1 and 2 below for a breakdown of US and global commercial fleets). The emergence of the PRC as a challenger to America’s global leadership has forced sweeping changes in US policy and spending priorities to boost America’s economic and military security. This report recommends that the US reform its policies governing America’s commercial maritime industries because shipping and shipbuilding are core components of national power. These industries remain especially crucial in the twenty-first century, as international trade is more important to a healthy American economy today than ever before. Yet Americans have almost no control over the maritime logistics systems that feed the US economy. The pandemic-induced supply chain crisis showed how much damage can be done when those systems break down.
Topic:
International Trade and Finance, National Security, Maritime, Industry, Domestic Policy, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America

162. Southeast Asia Is the Soft Underbelly of American Power in the Indo-Pacific

Author:
John Lee
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Southeast Asia is not just the swing sub-region in the Indo-Pacific but also the soft underbelly of the region—the area most susceptible to Chinese coercion, influence, and expansion. Except for Vietnam, Southeast Asian states have strong fence-sitting tendencies and are reluctant to properly balance and counter Beijing due to their proximity to China, smaller size, limited capabilities, and economic integration with and reliance on China. They are also constantly fearful that the US and its allies will abandon and leave them to fend for themselves against a hostile China. This means that while one can identify pockets of creative and proactive thinking in this sub-region, the prevailing inclinations of the region’s countries are to never back a side before the result is obvious, do the minimum when it comes to burden sharing, and receive maximum economic and security benefits for minimum risk, price, and commitment. In short, they are often inclined toward free riding. It is easy for the US and its allies to become frustrated with Southeast Asian states that give the impression they are seeking various forms of “strategic welfare.” The more constructive approach is to understand their domestic and external vulnerabilities and work within these.
Topic:
Foreign Policy, International Cooperation, Strategic Competition, ASEAN, and Regional Security
Political Geography:
China, Southeast Asia, United States of America, and Indo-Pacific

163. The “Odious” Legacy of Chinese Development Assistance in Africa: The Case of Angola

Author:
Rafael Marques de Morais and Thomas J. Duesterberg
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Within days of taking office, China’s new foreign minister, Qin Gang, was on a plane to his country’s main African client: Angola. Landing in Luanda on January 12, Qin Gang was ostensibly bringing a gift—a $250 million loan to help Angola expand high-speed broadband. Some gifts, however, are not what they seem, and some of the recent financial gifts from Chinese sources have been toxic. Soon after Qin visited Angola, US Treasury Secretary Janet Yellen traveled to three African countries but skipped Angola, possibly because of its checkered history with Chinese development assistance. The case of Angola raises questions about the extent and nature of Chinese loans and infrastructure aid to a growing number of African nations, as well as the consequences of such loans on those countries’ relations with the US.
Topic:
Foreign Policy, Economics, Infrastructure, Trade, Development Assistance, and Loans
Political Geography:
Africa, China, Angola, and United States of America

164. Empowering Ukraine Prepares Us for China

Author:
Rebeccah L. Heinrichs
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
China is America’s number one adversary due to Beijing’s willingness and capability to undermine US security, freedom, and prosperity. One pressing way China could strike a blow against US interests would be to violently force Taiwan to unify with mainland China. Doing so would immediately cause a global recession and rupture the US alliance architecture in the Pacific. It would also clear the way for China to contest US interests in the global commons far beyond the region. Some policymakers who are rightly concerned about the threat China poses to Taiwan argue that the United States should stop aiding Ukraine and instead divert attention, support, and weapons to Taiwan. While proponents of this argument are right to convey a sense of urgency and focus on some points that are true, their position overlooks key facts that make its simplistic zero-sum formulation unrealistic and self-defeating. For example, their argument does not sufficiently grapple with the connection between the China and Russia threats to US interests and allies, the responses of allies and how their perspectives affect outcomes, and the way the US budgetary and weapons delivery systems function.
Topic:
Defense Policy, Military Spending, Military Aid, and Russia-Ukraine War
Political Geography:
China, Europe, Ukraine, Taiwan, and Asia

165. The Chinese Communist Party’s Campaign on University Campuses

Author:
Ellen Bork
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The People’s Republic of China (PRC)’s influence activities at American universities have received considerable scrutiny from the US government, Congress, and media over the past several years. Many of them operate under the auspices of its united front, a loose network of entities for which there is no American equivalent.1 The united front is a Leninist concept the Chinese Communist Party (CCP) adopted from the Soviet Union in the earliest phase of the party’s development. United front activities “control, mobilize, and otherwise make use of individuals outside the party to achieve its objectives . . . domestically and internationally.”2 In recent years, General Secretary Xi Jinping has reinvigorated the united front, drawn it more tightly under his control, and directed it to serve an ambitious agenda to project Chinese power globally and undermine liberal democratic norms. China’s influence activities are part of the country’s subnational united front agenda, which targets not only universities but also state and local governments, private businesses, and civic organizations, in line with Mao Zedong’s directive to “target local entities in order to weaken the national core.” Some of China’s united front efforts, including Confucius Institutes and Chinese Student and Scholar Associations, have experienced declines and exposure. This is not as significant as it might seem. The CCP has a record of responding to united front failures by regrouping and doubling down. US intelligence agencies have warned that China is intensifying influence efforts at the subnational level. Several factors complicate America’s ability to respond effectively to China’s united front activities at American universities. Under America’s federal system, states, cities, and educational and civic institutions have no responsibility for and little experience in defending against national security threats. For much of its relationship with the PRC, the US minimized the fundamental differences between the US democratic and Chinese communist political systems. American leaders encouraged not only trade and investment but also participation in activities that served the PRC’s political, ideological, and other agendas. Furthermore, Washington largely accepted the CCP’s conflation of itself with China and the Chinese people, enabling it to cast its critics—including those in the US and elsewhere in the West—as “anti-China,” xenophobic, or racist. The Trump administration began countering united front activities, including by educating the American public, state and local officials, and university administrators about the threat they pose. Despite the bipartisan consensus on China that has emerged in recent years, the Biden administration has not maintained the same priority on countering united front efforts.
Topic:
Defense Policy, Education, National Security, and Chinese Communist Party (CCP)
Political Geography:
China, Asia, North America, and United States of America

166. Success in the Struggle against the People's Republic of China

Author:
John Lee and Lavina Lee
Publication Date:
06-2023
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
In April 2023, the Australian government released the officially commissioned but independently produced Defence Strategic Review. Intended to assist the government of Australia with its strategic and defense policies over the next decade and beyond, the report offered the fundamental assessment that the Indo-Pacific region “faces increasing competition that operates on multiple levels—economic, military, strategic and diplomatic—all interwoven and all framed by an intense contest of values and narratives.”1 The Biden administration’s National Security Strategy, which had been released several months earlier (October 2022), stated the challenge in even starker terms: “The People’s Republic of China harbors the intention and, increasingly, the capacity to reshape the international order in favor of one that tilts the global playing field to its benefit.”2 At the heart of these statements is the perception that China poses a systemic and comprehensive challenge, not just to the vital interests and values of the United States and Australia, but to the entire system and order that was cobbled together after the Second World War. These postwar rules, norms, institutions, conventions, practices, alliances, and security relationships have been underwritten by US material power. They constitute a liberal order that is under intense challenge from China.3 This report explores what success in relation to China looks like for the US, Australia, and allies such as Japan. Several substantial and thoughtful pieces have described what victory would look like for China,4 and there have also been many good efforts to describe what victory would look like for the US and its allies, given China’s goals and objectives. The current report focuses on a US and Australian vision of success in which the geopolitical contest and struggle are enduring and do not end with a victory for any side. Victory generally means defeating an enemy or opponent in a specific context or activity. Unsurprisingly, the term is commonly associated with defeating an enemy during a battle or compelling the unconditional surrender of the enemy when engaging in war. In victory, there is a clear winner and loser. By way of contrast, success or successful struggle means the accomplishment of an aim or purpose in general or specific contexts. It might include subduing an opponent and attaining victory over that opponent. But success can also be achieved without the strict formal requirement of victory, depending on one’s objective. The term success is used here because the scope of this report is broader than victory in a traditional war context (even if the use of force is always an option to achieve success or deny it to the opponent). It will be apparent that the Chinese notion of war is far broader than the Western notion. The West holds that war is fought within and across identified air, sea, land, space, and cyber domains, and that war has a discernible beginning and end. In the Chinese conception, war has no boundaries or restrictive form and does not necessarily involve the kinetic use of force. It is material, but also ideational, psychological, and structural.5 Indeed, for the Chinese, the apogee of conflict is to win without fighting, even if the Chinese Communist Party (CCP) sees the environment as one of perpetual struggle. Hence, war may have no formal beginning or end. For this reason, a US and Australian vision of success cannot simply be about achieving specific key objectives, like maintaining Taiwanese de facto independence or preventing further Chinese militarization of the South China Sea. To be sure, a vision of success is based on certain fundamental end states (such as preventing Chinese material and normative dominance in East Asia). However, it also accepts the likelihood of a constant struggle against a formidable China, just as China assumes the long-term existence of a formidable US with significant allies in the region. In other words, the authors work on the prudent assumption that China will be neither defeated nor terminally weakened, and that its expansionist ambitions and substantial capabilities will remain. Rather than focusing on a final victory or endpoint, a vision of success conceptualizes an advantageous and enduring state of affairs or system of arrangements in the region that supports the fundamental objectives of the US and its allies in the Indo-Pacific. This report is about successful struggle, but not in the context of a major war where one side wins decisively and the next step is to establish a sensible peace. This is not to discount the possibility that the use of force could be decisive in shaping the region. But the report focuses on scenarios of an increasingly tense competition and rivalry occurring over the next decade and explores what success looks like in that context. It does not discount the possibility or necessity of limited military action, but does not assume that any such action would be decisive in producing a permanent winner and loser.
Topic:
Foreign Policy, Geopolitics, and Strategic Competition
Political Geography:
Japan, China, Asia, Australia, and United States of America

167. Xi Jinping’s Vision for the Middle East

Author:
Yair Albeck
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Chinese leader Xi Jinping clearly aspires to establish a new global economic order centered around Beijing, not Washington. However, a new global economic order cannot be built in a day. The immensity of this challenge has forced Xi to set his sights on a set of interim goals. These include cementing the Communist Party’s control of the Chinese economy and shielding supply chains, capital flows, and strategic bilateral and multilateral relationships from hostile American policies. These goals equate to the creation of a Sinocentric global economic subsystem. This would be partially integrated into the current Western-led system but would be sufficiently decoupled from the West to protect the pillars of the Chinese Communist Party’s political economy. In Beijing’s grand design, the Middle East plays an indispensable role. But Western analysts have often misjudged China’s interests in the region as purely commercial. While Xi values the region for its economic potential, he sees it as one of the most important arenas of competition with the United States. Yet when United States National Security Advisor Jake Sullivan recently discussed American leadership of the global economy, he focused on Europe and the Indo-Pacific and mentioned Africa and Latin America. He did not mention the Middle East once.1 Washington’s persistent blind spot in the Middle East has obscured its view of Beijing’s global ambitions. If the US does not rectify this mistake, it risks losing more influence in the region and aiding China’s effort to supplant the US atop the global economic order.
Topic:
Foreign Policy, National Security, Political Economy, Foreign Direct Investment, and Xi Jinping
Political Geography:
China and Middle East

168. Campaigning to Dissuade: Applying Emerging Technologies to Engage and Succeed in the Information Age Security Competition

Author:
Bryan Clark and Dan Patt
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The People’s Republic of China (PRC) presents the United States with its most comprehensive economic and security rival since Great Britain during the nineteenth century. Starting in 2018, US defense strategies have highlighted the threat that the PRC poses to US allies, and successive presidential administrations and Congresses responded by increasing defense budgets to expand US military capability and capacity. Despite these efforts, numerous assessments now show that modernization of the People’s Liberation Army (PLA) has eroded—and in some missions overcome—US military superiority. Absent large and politically fraught increases in defense spending, continued expansion and improvement of today’s US force are unlikely to regain broad overmatch against the PLA in the Western Pacific. Instead, the United States will need new strategies and operational concepts to deter PRC aggression. Recognizing this imperative, the 2022 US National Defense Strategy (NDS) attempted to move in a different direction from its predecessors through two new lines of effort called “campaigning” and “integrated deterrence.” However, in unclassified documents and speeches by defense officials, both the essence of integrated deterrence and the mechanism of campaigning remain unclear. 1 Emerging technologies offer the US military a way to put these new concepts into action, sustaining its ability to prevent conflict and gaining an upper hand in the strategic competition with China despite the PLA’s “home team” advantages. The United States remains the world leader in operational and technological innovation, as evidenced by decades of advancements in networking and computing—marked recently by the rapid commercialization of artificial intelligence (AI). Building on the 2022 NDS, this report proposes a strategy for campaigning that would exploit information technologies to dissuade China from pursuing acts of aggression against allies such as Taiwan. The primary objective of the proposed campaigning model is to shape PRC government decision-making, especially that of the PRC military, in ways that are conducive to long-term regional stability and prosperity. A whole-of-government effort like that implied by the 2022 NDS would be the most effective form of campaigning because it could exploit the PRC government’s numerous vulnerabilities, from its appalling record on human rights to its loss of economic momentum and its growing demographic challenges. However, this report focuses on actions the US military can take by itself or with allied militaries to dissuade future PRC aggression. In the proposed approach, campaigning is an ongoing sequence of probing, signaling, adapting, and acting by the US military and intelligence community, coupled with and informed by instrumentation of the information environment. In addition to demonstrating US resolve, campaigning should enable the US to estimate competitor habits, preferences, and fears. These estimates would guide future campaigning activities and inform US force planners regarding a competitor’s uncertainty and areas of concern. Armed with increasing insight about adversary beliefs, campaigning actions would aim to shape an opponent’s preferences and priorities away from violent paths to their goals and toward scenarios that are more aligned with US interests. In offering an approach to dissuasion, this report diverges from the strategy of deterring war primarily through threats of denial or punishment. This construct has dominated US defense strategy since the Soviet Union collapsed because conventional dominance enabled the US military to credibly stop or reverse an act of aggression and nuclear weapons provided the capability to impose existential punishment. Today, the PRC’s status as a peer competitor makes denial and punishment less credible. The US government will instead need to prevent conflict before it becomes imminent.
Topic:
Security, Defense Policy, Economics, Science and Technology, Strategic Competition, and Emerging Technology
Political Geography:
China, North America, Asia-Pacific, and United States of America

169. Eritrea’s Growing Ties with China and Russia Highlight America’s Inadequate Approach in East Africa

Author:
Joshua Meservey
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
China and Russia have recently increased their engagement with Eritrea, a small but strategically located country in East Africa. Meanwhile, American influence in the region is amid a yearslong slide. Despite the obvious risks, the United States has failed to muster a committed response and has even taken some counterproductive measures that demonstrate a lack of strategic thinking. If these trends continue, a vital region may fall under the conclusive influence of Washington’s primary geopolitical competitors.
Topic:
Security, Foreign Policy, Bilateral Relations, Geopolitics, and Strategic Planning
Political Geography:
Africa, Russia, China, Eritrea, and United States of America

170. Strength in Unity: A Sustainable US-Led Regional Security Construct in the Middle East

Author:
Robert Greenway
Publication Date:
08-2023
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
China and Russia are exploiting US indifference toward the Middle East and efforts to integrate Iran into the region, threatening regional stability, Israel’s security, and global markets. The convergence of threats encompasses an Iranian nuclear threshold state controlling a constellation of terrorist groups, resurgent non-state terrorist groups including ISIS and al-Qaeda, and Russian and Chinese exploitation of receding American presence. We are reaching an inflection point at which the United States risks the irrevocable loss of a favorable balance of both trade and forces, resulting in instability that will threaten our vital interests and the global economy. This constitutes an unprecedented range of challenges beyond our capacity, and the capacity of our partners and allies, to address threats to global energy and trade as we struggle to recover from a global pandemic. We have not faced a similar period of risk in the Middle East since the turmoil following the Iranian Revolution, Soviet invasion of Afghanistan, and storming of the Grand Mosque in 1979. The US shares vital national security interests with longtime partners in the region and, as a result, they prefer US leadership in both the economic and security domains. A sustainable US-led regional security construct in the Middle East that includes effective partners based on convergent interests is the most efficient way to address the unacceptable risk, which results from the disconnect between the vital national interests of the US and its partners and the resources both have committed. A constellation of mutually beneficial trade relationships providing both the resources and rationale for a regional security construct would strengthen such an arrangement.1 Establishing a US-led enduring regional security architecture comprised of more capable partners and allies is the most effective way for the United States to safeguard our vital national security interests in the Middle East. This architecture would provide five key benefits: Secure our vital interests. The US and global economies depend on the uninterrupted flow of energy from and trade through the Middle East, which remains a vital national security interest. Compete with China. China depends on the Middle East for energy to sustain its economy and military. Beijing is exploiting the vacuum created by US indifference to securing the Middle East. Manage risk and uncertainty. Threats in the region are approaching a quantitative military advantage over America’s partners, which creates unacceptable risk to US interests. Leverage our relationships. We retain advantages in the long-term diplomatic, economic, and security relationships that we have derived from convergent interests with partners. Build on a sound foundation. Historic efforts to build collective security constructs, many of which have occurred within the Middle East, provide valuable lessons.
Topic:
Foreign Policy, Non State Actors, Strategic Competition, and Regional Security
Political Geography:
Russia, China, Iran, and Middle East